Cash rate matches 2011 peak, but mortgages have doubled
Cash rate hit 4.6%, highest since 2011, but average mortgages doubled to $731,000, making each rise far more painful.
The Reserve Bank lifted the cash rate by 0.25 percentage points this week, its fourth increase in 2026. In June 2011, the average new home loan was about $363,000.
Now it sits at $731,000. Incomes rose only 60% over that 15-year span.
Mortgage payments now eat up just under 10% of household disposable income, close to 2024 peaks. A 0.25 percentage point rise adds around $100 a month for a first-home buyer on the current average $610,000 mortgage.
Recent buyers are hit hardest because they carry much larger loans, have built little equity, and lack the savings buffers of older homeowners.
- 4.6%
- Cash rate
- A$363,000 to A$731,000
- Average mortgage doubled from
- just under 10%
- Mortgage burden of disposable income
- around A$100
- Monthly payment impact per 0.25% rise
Why it mattersAustralians with recent mortgages face much tighter budgets with each rate rise, even though the cash rate number looks familiar.
AustraliaAustralian mortgage holders, especially first-home buyers, see sharply higher monthly repayments as rates climb. Older homeowners with paid-down mortgages feel less pressure.
✓ Claims checked against the source. checked 2 h ago
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